Assertion: The most simple and the shortest mode of distribution is direct distribution as there is no middlemen involved.
Reasoning: Reebok selling shoes from company owned outlets is an example of direct channel.
Reasoning: Reebok selling shoes from company owned outlets is an example of direct channel.
Answer & explanation
Correct answer: option 2
Direct Channel (Zero Level): The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channel. A straight and direct relationship is established between the manufacturer and the customer. For example, when a manufacturer sells his goods through his own retail outlets (e.g., Mc Donald, Reebok, Bata); it is referred to as direct channel